I am quite frankly surprised by his surprise.
"We've been doing online gameplay for 15 years now... and with World of WarCraft and our roots in Battle.net and now with Diablo 3, it really is just the nature of how things are going, the nature of the industry. When you look at everything you get by having that persistent connection on the servers, you cannot ignore the power and the draw of that."
I love how he points out that this is the direction that the industry is going. That could be true, but the industry NEEDS to got the way the consumers want it to go. And I can't think of a single reason to have a persistent online connection outside any MMO at all. The only thing we will have access to all the time seems to be the game breaking store. The only time you need a persistent connection is for PVP, and since the single player game doesn't have PVP, then there really is no reason for it.
I take back what I said, I'm not surprised by his reaction at all. When you are as big as Blizzard is, then you get disconnected from your target audience. Then another company is going to come along, and take them away because they are capable of anticipating consumer needs. That is why people get to the top, and do not occupy it for long.